(Tiểu luận) group report topic vinamilk strategic management

115/2003QD BCN dated October 10, 2003 of the Ministry of Industry on converting the State-owned enterprise Vietnam Dairy Products Company into Vietnam Dairy Products Joint Stock Company.

7HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND FINANCE

Nguyen Thu Thao-205011297 Nguyen Hoai Nhi-205013838 Nguyen Thi Kim Hien-205016540 Truong Dinh Duc Sang-205015809

Class: 20D1QT17

Introdution:

Introduction of Vinamilk Dairy Company:

Vietnam Dairy Products Joint Stock Company was established on the Decision No 115/2003QD BCN dated October 10, 2003 of the Ministry of Industry on converting the State-owned enterprise Vietnam Dairy Products Company into Vietnam Dairy Products Joint Stock Company.

The transaction name is VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY.

Development process:

- Formerly the Southern Milk and Café Company under the General Food Corporation, with 6 affiliated units are:

+ Thong Nhat Dairy Factory + Truong Tho Dairy Factory + Dielac Milk Factory

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+ Bien Hoa Café Factory

+ Bich Chi Powder Factory and Lubico

-In 1978, the company was transferred to the Ministry of Food Industry for management and the company changed its name to Confectionery Milk, Coffee and Confectionery Enterprise I and in 1992 was renamed Vietnam Dairy Products Company is under the direct management of the Ministry of Light Industry.

-1996 Joint venture with Quy Nhon Frozen Joint Stock Company to establish Binh Dinh Dairy Joint Venture Enterprise This joint venture facilitates the Company to successfully penetrate into the Vietnamese market.

-11-2003 marked an important milestone when officially transformed into a Joint Stock Company, renamed Vietnam Dairy Products Joint Stock Company The Company then purchased and acquired Saigon Dairy Products Joint Stock Company, increasing the Company's registered charter capital to VND 1,590 billion.

-2005 bought the remaining shares of the joint venture partner in Binh Dinh Dairy Joint Venture Company (later renamed Binh Dinh Dairy Factory) inaugurated Nghe An Dairy Factory, Joint venture with SABmiller Asia B.V to establish SABMiller Vietnam Joint Venture Co., Ltd The company's first product under the Zorok brand was launched -2006 Vinamilk was listed on the Ho Chi Minh City Stock Exchange on January 19, 2006, in which the capital held by the Investment and Trading Company is 50.01% of the charter capital.

-2007 bought a controlling share of 55% of Lam Son Dairy Company The company has achieved many noble brands:

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o Labor Medal Class II (1991-awarded by the President)

o Labor Medal Class I (1996-awarded by the President)

o Hero of Labor (2000-awarded by the President)

o Independence Medal Grade III (2005-awarded by the President) "Super Cup" of high quality and prestigious Vietnamese goods in 2006 by the Association of Intellectual Property & Vietnam Small and Medium Enterprises.

o Top 10 "Vietnamese high-quality goods" (from 1995 to present)

o "Gold Cup - Prestigious Securities Brand" and Vietnam's leading joint stock company'' (in 2008 by the State Securities Commission - the State bank of the Securities Business Association - Viet Nan Securities and Industrial Trade Company and Thang Long Cultural Company)

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2.Mission, Vision, Objectives

Mission: "Vinamilk is committed to providing the community with the best and most quality nutrition with its own respect, love and high responsibility for human life and society"

With the current commitment to consumers, by heart and by faith, Vinamilk's products will certainly bring great nutritional value, and bring high quality products to consumers in the most perfect way Then this is showing a noble mission, which Vinamilk itself must have a real responsibility to themselves, to society and people, to dare to do this If we develop well, we will become one of the leading symbols of faith to Vietnamese people, with the brand name Vinamilk being one of the words, wherever you go, you can go anywhere present a product of the highest quality, and the product that gives people the safest health today.

I believe, Vinamilk brand has done this, when they have implemented the strategy of bringing core values to all regions of our country Vietnam.

Vinamilk always demonstrates integrity and integrity in any transactions with customers and consumer agents Vinamilk always respects colleagues, everyone from the company to the cooperation partners Vinamilk always brings fairness to partners and customers, as well as to all workers working here Vinamilk always has professional ethics and respects established ethical standards and acts in the right way.Vinamilk will definitely comply with the laws of Vietnam, and the code of conduct with the company's regulations and policies for everyone who is working directly or indirectly with Vinamilk.

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Vinamilk always brings people one of the nutritional solutions according to international quality standards, helping all current consumers to use and solve their needs, about nutritious and delicious products, bringing good value to the health of consumers today The brand name of Vietnam Dairy Products Joint Stock Company (Vinamilk) is currently leading in the market, and is the most preferred by many people.

o Strengths: Vinamilk's products will definitely bring great nutritional value, and bring high quality products to consumers in the most perfect way Expressing a noble mission, Vinamilk itself must have a real responsibility to itself, to society and people, to dare to do this.A mission usually describes the actions a business needs to take to achieve its vision In other words, the mission is often more present-focused They will clearly define the customer, map out the critical processes and dictate the level of activity that needs to be implemented.The mission statement of the business will help define the desired results and goals These criteria will be ingrained in the subconscious of employees, thereby helping them have goals and work more effectively.

- Therefore, up to now, the mission of Vinamilk company has not had any weak points Vision

Vision: "Becoming the number 1 belief symbol in Vietnam about nutrition and health products for human life"

In order to make Vinamilk brand become one of the leading symbols in Vietnam, specializing in nutrition and health products, and focus on developing well to serve Vietnamese people's lives and the world to become better in the future That is one of the very long-term visions that Mr Tam Pacific must learn from.

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This is a clear strategic vision, not saying it can be done Because in Vietnam, not only Vinamilk's milk is famous, but also dozens of brands from international and domestic dairy brands, always wanting to be wary of this vision of Vinamilk.

o Strengths: making the brand one of the leading symbols of Vietnam, specializing in nutrition and health products.

o Weaknesses: In Vietnam, not only Vinamilk is famous but also dozens of brands from world and domestic dairy brands, always wary of this vision of Vinamilk.

Core values: 5 core values Vinamilk commits to the community:

o Integrity: Integrity, honesty in conduct and in all transactions.

o Respect: Respect yourself, respect your colleagues, respect the company, respect cooperation Cooperate with respect.

o Compliance: Comply with the Law, the Code of Conduct and the company's regulations, policies and regulations.

o Ethics: Respect established standards and act ethically.

o Fairness: Be fair to employees, customers, suppliers and stakeholders.

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3.Environmental Scanning

PESTEL

The Government has many policies to support the development of the dairy industry In which, Decision No 167/2001/QD-TTg dated October 26, 2001 of The Prime Minister on a number of measures and policies to develop dairy farming in the 2001-2010 period is very important This is a policy that means vision and strategic planning for the dairy industry In addition, there are related policies such as the development of the dairy industry.

The Ministry of Agriculture and Rural Development has set out a strategy to develop the dairy industry Accordingly, by 2020, the consumption will be 12 kg/person; in 2015 it will be 16 kg/person; in 2020 over 20 kg/person will be by international standards.

According to Decree 21/2006/ND-CP, in order to ensure competitiveness for quality and branded domestic dairy products on the market today,the advertising and marketing issues of dairy products that have not been tested for features have been tightened.

It can be seen that, in the past few years, dairy is one of the fastest growing industries in the food sector in Vietnam, with an average revenue growth of 18% per year Along with the integration process Globally, the domestic economy is growing, and people's living standards are improved, which have contributed to promoting milk consumption in Vietnam.

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International economic integration brings opportunities for Vietnam's dairy industry such as: restructuring production, dissolution, purchase and sale or merger of inefficient enterprises to create larger enterprises,

have more potential.

Besides, Vinamilk is facing some problems such as: -Food safety and hygiene and milk quality.

-The integration into the WTO will make small dairy factories in Vietnam unable to compete with big milk corporations in the world such as Mead Johnson, Abbott

Our country has a large population, by the middle of 2009 it was 85,789,573 people, of which the rate of 0-14 years old accounted for 29.4%, from 15-16 accounted for 65% From there, the scale of milk consumption can be forecast This is a potential market Living standard of people: The living standard of people in Vietnam is still low, the difference between urban and rural areas can be clearly seen It can be seen that people in urban areas consume more than 80% of the country's milk.Do With the increasing socio-economic development in recent years, per capita income has increased significantly (over 1000 USD/person/year) People's lives are gradually improving from both urban and rural areas Therefore, people are starting to pay more attention to their health, thus their willingness to pay for nutritional products in general and products milk in particular is increasing.

Vietnam is not a country with a tradition of milk production, so the majority of people do not have the habit of consuming milk Due to the higher the living conditions and awareness of the majority of people, the higher the population, the better 8

Milk drinking habits are improving, especially with children Technological

Currently, the technological limitations of Vietnam's dairy industry in general lie in the procurement of raw materials and how to store them after purchase due to a poor procurement system, lack of refrigeration and storage equipment The main reason is that due to the high cost of investment in the milk production line This is a big challenge for the whole dairy industry in Vietnam.

Besides, the milk production line still has to be imported from abroad with high cost and long time.

However, technological development, with the integration of Vietnam into the world, modern milk production lines have been applied to Vietnamese dairy companies such as Vinamilk,Dutch Lady high efficiency and gain the trust of customers.

Vietnam is an agricultural country, with a large area of grassland, many hills and mountains suitable for raising cattle, in the past few decades,dairy cows have become familiar to people through many projects to expand the area of cows for raw materials Currently in Vietnam, the cattle industry is still in a small state with more than 95% of farmers' farms still below 10 heads/farm Farmers lack both capital and husbandry skills In recent years, the Government and dairy companies have focused on supporting dairy farmers, planning dairy farms, with infrastructure, scale, and living conditions of dairy farmers advanced.

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Competitive pressure is increasing due to the reduction of tax on imported milk according to Vietnam's tariff reduction policy when implementing ASEAN's CEPT/AFTA commitments and commitments with the World Trade Organization (WTO)

On March 25, 2010 Vietnam Dairy Association was officially established, gathering 68 members including organizations, individuals, households is operating in the field of milk production and processing nationwide.

Porter’s 5 forces Pressure from suppliers

It can be said that the leading enterprises in the dairy market have the goal of building long-term development with large and small domestic and foreign suppliers This helps

Vinamilk ensure a stable source of raw materials with the best price and quality The milk source that Vinamilk has is mostly from the farm that the company and farmers build 95% of dairy cows are raised in households and the remaining 5% come from Vinamilk's specialized farms, each farm has about 1 - 200 cows.

In addition, milk purchased by Vinamilk from farms must also meet and meet the standards signed between Vinamilk and other dairy farms With 95% of cows raised on people's farms, the pressure Vinamilk receives is unstable quality because of limitations in care techniques This makes Vinamilk's bargaining power with manufacturing companies significantly reduced Furthermore, the small farm size leads to frequent diseases of dairy cows.

Pressure from competitors in the same industry

As we all know, Vietnam's dairy industry is currently an extremely competitive industry because dairy brands always want to affirm their quality and position with consumers Since then, Vinamilk has been under a lot of pressure from domestic and foreign competitors in the same industry, some of which can be mentioned as: TH True Milk, Nutifood, Abbott, Nestle, etc.

In terms of liquid milk alone, which accounts for the majority of revenue of dairy enterprises, Vinamilk has to contend with famous brands such as:

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TH True Milk, Dutch Girl, Moc Chau, etc.Among these names, TH True Milk is the name that Vinamilk must be wary of because TH has taken quick steps and gained the trust of consumers.

In addition to dairy products, Vinamilk also has a number of other products such as sugar, cheese, and coffee However, these products have not yet created a big buzz because Vinamilk is behind other big players in the industry.

Pressure from customers

Customers are the ones who bring in revenue for each business, that's why customers are always a factor that businesses put first and Vinamilk is no exception Innovations, new product developments all have the same goal of providing the best customer experience Customers here are not only retail customers but also supermarkets, agents, grocery stores, etc.

The dairy market is always a competitive market, so brands in the industry are constantly releasing new products New products are often invested by major brands in terms of design, taste, and nutritional value It can be seen that, when society develops, users are not only interested in price but also care about many other factors Factors such as brand, nutritional value or eye-catching design are all more important than cheap prices Understanding that, businesses have invested in building an image with quality products, then considering the price Because today's milk users are mainly children, the elderly and pregnant women Therefore, raw materials and nutritional quality of milk are most concerned.

However, nowadays, distribution agents or small retailers all have tricks to navigate consumers

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If the brand does not change in a new direction, without good commission or discount policies, it will lose a large number of potential customers.

Pressure from substitute products

Currently, in order to meet the needs of consumers, the food market is always improving and diversifying products Vinamilk is also under great pressure from conventional liquid milk substitutes such as nut milk, cereals and soft drinks with milk These are product lines formed from the needs of users because they always want to drink a fat-free drink but still ensure full nutritional value.

Pressure from barriers when entering the industry

Currently, in order to gain a position in the dairy market in Vietnam and abroad, Vinamilk has had to go through many barriers Especially when the market is increasingly saturated and the impact of the Covid 19 epidemic.

Industry entry costs: Depending on the size, quantity and type of products, this cost will vary For Vinamilk, the cost of investing in research, development and promotion of liquid milk and yogurt products is the most expensive.

Distribution channels: Currently, Vinamilk has expanded its distribution system to all 63 provinces and cities on an S-shaped strip of land Products are widely distributed from supermarkets, convenience stores, and grocery stores retail The current product distribution channels of the dairy industry have been fully utilized by existing businesses Therefore, the new entrant must convince these distribution channels by accepting high commission share Therefore, it can be concluded that the pressure from new entrants is not significant, but competition will mainly take place within the existing industry.

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Product characterization: Currently, the dairy industry is no longer strange because more brands in this industry are born than ever before To be able to survive and have a

foothold, brands must have innovation with differentiated quality However, the difference must be ensured parallel to the core values of the brand and the customer.

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b.Internal environmental analysis

Vinamilk's internal environment:

The infrastructure:

The company has invested heavily in infrastructure Typically from 2005 to 2011, the company has invested about VND 4,500 billion to modernize machinery, equipment, and technology for production and to build new processing plants as well as branches and factories: Lam Son Dairy Machine (December 2005); Vietnam Beverage Factory (2010); Can Tho Branch (1998); Hanoi logistics enterprise (2010), and is promoting the construction of 2 modern fully automated Mega centers in the North (Tien Son) and the South (Binh Duong), two Dielac2 powdered milk factories in Binh Duong and Da Nang Dairy Factory These plants are expected to come into operation at the end of 2012 To contribute to exploiting the potential and developing the high-tech dairy industry, the company has established raw material areas in the country by building five dairy farms: Tuyen Quang Dairy Farm (2007) ; Nghe An Dairy Farm (2009); Thanh Hoa Dairy Farm (2010); Binh Dinh Dairy Farm (2010); Lam Dong Dairy Farm (2011); with a total herd of 5,900 cows.

Human Resources:

The company has an enthusiastic and experienced team in the industry Chairman Mai Kieu Lien has 30 years of experience in the dairy industry at the company and plays a key role in the company's growth and development Other senior management members have an average of 25 years of experience in the production, distribution and sale of dairy products In addition, the company has a strong middle management team well-equipped to support senior management while injecting youth and enthusiasm into the company's 15

development career.

The company has also trained an experienced sales and marketing team in analyzing, identifying consumer tastes and trends, and supporting direct sales staff who understand people's tastes well consumption through regular access to customers at multiple points of sale For example, understanding the tastes of children from 6 to 12 years old helped Vinamilk successfully launch a marketing strategy called Vinamilk Milk Kid in May 2007 As a result of this marketing strategy, Vinamilk Milk Kid became the best-selling dairy product in the market for children from 6 to 12 years old in December 2007 Vinamilk also has a research and development team of 10 engineers and one technical staff Research personnel work closely with the marketing department, which

continuously collaborates with market research organizations to identify consumer trends and tastes Therefore, the company has the ability to develop new products based on the increasing tastes of consumers The company also actively conducts research and collaborates with market research companies to understand sales trends and activities, consumer feedback and relevant media food and drink problem.

Regarding human resource work, in recent years:

+ The company always ensures adequate work for employees, the income of employees is increasingly improved such as maintaining the income level of the following year from 10 to 20.3% higher than the previous year.

In addition to salary income, employees also have income from profits divided according to their percentage of ownership in the company if the company makes a profit.

+ To fully implement, rights and obligations towards employees in accordance with the provisions of law

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Timely reward policy for individuals and collectives with meritorious contributions to the company, taking disciplinary measures against individuals whose actions adversely affect the interests and reputation of the company.

+ Support and create favorable conditions for employees to participate in training courses at home and abroad to improve their professional knowledge Training and arranging human resources in accordance with the company's development situation to increase quality The company has also selected more than 50 children, employees of the company and excellent students through the entrance exams on dairy technology as the core of the future successor force to send for training abroad More than 100 scientists and engineers were sent to acquire domestic technology for a short time; 12 people attended director training classes; 15 staff trained in high-level political theory; 9 officers attended training classes for trade union officials Thus, Vinamilk has invested in developing human resources to create competitive advantages for businesses.

Technological development:

Over the past time, Vinamilk has constantly innovated technology, invested in modern machinery and technology, improved management and product quality, and met the increasing demands of consumers Vinamilk's modern, large-scale milk processing factories produce 100% of products for the company because Vinamilk does not bring out processed products (except for bottled water) Most of the machinery and equipment are imported from European countries such as the US, Denmark, Italy, Germany, the Netherlands installed by the world's leading experts in operating instructions and technology transfer, has produced over 300 types of high quality products Vinamilk is the only company in Vietnam that owns a system of machines using spray drying 17

technology manufactured by Niro of Denmark, the world leader in industrial drying technology In addition, the company also uses international standard production lines provided by Tetra Pak to produce dairy products and other value-added products Vinamilk owns a large network of factories in Vietnam These plants usually operate at 60-70% capacity for most of the year, except in the dry season from June to August, when new factories operate at 80-90% capacity.

+ Sugared condensed milk production line: Capacity 307 million cans/year.

+ Production line of pasteurized fresh milk, drinking yogurt, and fruit juice: capacity of 237 million liters/year Vinamilk is planning to invest in more filling machines to be more flexible in production.

+ Yogurt production line: Capacity is about 56 million liters/year Vinamilk is planning to upgrade yogurt production lines at factories in Can Tho, Ho Chi Minh City, Nghe An and Binh Dinh.

+ Powdered milk production line: Capacity is about 19,000 tons/year.

+ Coffee factory: Each year produces about 1,500 tons of instant coffee and 2,500 tons of whole roasted coffee Vinamilk is planning to invest in increasing the factory's output by 568,047/ton/year.

+ Brewery: Starting capacity is 50 million liters/year and will increase to 100 million liters/year in the future.

Input logistics:

To meet production demand, Vinamilk has purchased milk from dairy farming

households The company has also encouraged dairy farmers by consuming all fresh milk products at high prices (higher than world prices), accepting reduced profits from 18

processing (from 15 to 25 billion VND per year) to compensate for the high milk purchase price, and at the same time provide technical support for the preliminary processing, storage and preservation of fresh milk for farmers Besides, the company has also established raw material areas in the country by building dairy farms For dairy companies, a stable and quality supply of raw milk is especially important Therefore, Vinamilk has built sustainable relationships with suppliers through the evaluation policy and financial support for farmers to buy dairy cows Manufacturing plants are

strategically located near dairy farms, allowing the company to maintain and strengthen relationships with suppliers At the same time, the company also carefully selected the location of the milk collection center to ensure fresh milk and good quality Besides, Vinamilk also imports powdered milk from Australia and New Zealand to meet production needs in both quantity and quality This is a very important factor to help businesses stabilize their business and increase output.

Production process:

The company applies a strictly controlled production process to ensure product quality and control costs in all stages of production Vinamilk's factories always adhere to the principle that production must be associated with the market, based on the needs of the market to adjust production plans accordingly Implement strict management and improve product quality, promote the development of product lines,diversify product categories, give priority to products with competitive advantages and high value and market stability Practice thrift in every stage of the production process, especially raw materials - fuel The company strictly implements regulations on fire prevention, safety protection of production facilities and properties Effectively implement ISO and HACCP 19

certificates, build wastewater treatment systems at all processing facilities; coordinate with the local to improve the natural environment as a basis for more Green-Clean-Beautiful.

Output logistics:

Vinamilk's distribution network is a competitive advantage that is stronger than other competitors in the Vietnamese market Vinamilk owns a wholesale distribution system including 220 independent distributors present in 64 provinces and cities nationwide These distribution units serve more than 140,000 retail locations nationwide The company also sells directly to supermarkets, offices, factories and at the company's nutrition consulting points In addition, the company also organizes many promotional and marketing activities with local distributors to promote products and build brands across the country To support its distribution network, Vinamilk has opened 14 product showrooms in major cities such as Hanoi, Da Nang, Ho Chi Minh City and Can Tho Vinamilk is one of the few food and beverage companies equipped with a refrigerator and freezer sales system The investment in the refrigerator and freezer sales system is a big barrier for competitors who want to enter the food and beverage market, by equipping this refrigerator and freezer sales system requires a huge investment Besides the domestic distribution network, the company also has official distributors in United States, Europe, Australia and Thailand.Vinamilk will also soon establish a distribution network in Cambodia and other neighboring countries.

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• Service: Vinamilk performs customer care service combining a perfect after-sales service with attentive, dedicated service and always listens to feedback from customers In addition, the company provides nutrition counseling services at its nutrition centers, examines and provides free milk every year to thousands of children, primary school students and malnourished subjects.

• Human:Vinamilk has a management team that is experienced in the industry, professional, knowledgeable about the market, so it always keeps up with the changing trends of the market Attracting and retaining good employees is one of the key tasks set by the company every year Therefore, the Company has a dynamic and enthusiastic staff, attaching individual interests to the interests of the company.In addition to the traditional 4Ps of Marketing Mix, there is another equally important P that Vinamilk has been and continues to promote, which is the human factor In addition to business and production development, Vinamilk also focuses on human resource development because it is a qualitative development for long-term sustainability There are appropriate and competitive remuneration and remuneration policies The salary is suitable to attract, keep and encourage the working spirit of all employees in the company Promote policies that care about the lives and health of consumers to strengthen trust in the company • Having a sustainable relationship with suppliers, ensuring a stable and high quality source of raw materials.

• Wide distribution and sales network.

• Most of the Company's products share the same brand as "Vinamilk" - a famous brand that has won many awards and is one of the 100 strongest brands voted by the Ministry of 21

Industry and Trade in 2006, among "Top 10 High Quality Vietnamese Goods" from 1995 to 2007 With that advantage, the Company's products have received the attention and trust of consumers.

Vinamilk has implemented many programs rich in humanity, having great influence on consumer psychology, contributing to positioning in consumers' minds about a brand developed for the community This has created an advantage for Vinamilk that is difficult for competitors to imitate.

• Products with competitive prices:

Price is a major concern because it is a competitive factor and encourages consumers to choose a product Factors affecting the price of products include: production and business costs, psychological demand, competitor prices, and business objectives of the Company Vinamilk has maintained stable selling prices of dairy and dairy products since mid-2008 until now Currently, the selling price of Vinamilk products on the market is only about one third of that of foreign milk Some products are positioned in the minds of high consumers, the company implements a policy of upgrading products with higher selling prices because of better quality For example, a series of brands such as: Dielac to dieclac Anpha with colostrum colostrum of Vinamilk, Friso to Friso Gold, Dumex to Dumex Gold

For low value products, the Company has improved product quality more but price remains the same Typically pasteurized milk and yogurt In the future, if domestic raw materials are abundant and quality is guaranteed, the company will reduce the source of imported materials so that the price of the products will be more suitable for the income of the employees.

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There are often discounts and milk volume increases on holidays and anniversaries • Breakthrough in technology Vinamilk has implemented the strategy of "Shortcuts to catch up with new technologies" That is to make the most of credit sources to invest in renewing advanced equipment and modern machines of famous firms in the world “More than ever, in the field of food processing, hygiene and safety standards must be put first, so investing in modern technology is a factor to affirm quality and brand.”

Promoting internal resources is associated with the strategy of promoting internal resources, which is the "covering" of factories and implementing the "white revolution" - forming raw material areas nationwide From having only 3 factories in the South, in 2005, Vinamilk had 8 modern factories in the North - Central - South, a network of 1,400 agents to distribute products to the most remote areas with the one-price policy The company also accepts to reduce the annual profit of 15 billion -20 billion dong from processing to compensate for the purchase price of fresh milk for farmers Up to now, Vinamilk has invested over 20 billion VND, built transfer stations, cold storage tanks, supported dairy farmers, contributing to bringing the country's dairy herd to over 100,000 heads.

Turning competitors into partners This is Vinamilk's latest strategy to stay strong in the face of the "tsunami of integration"

With the principle of mutual benefit, Vinamilk will cooperate with large international corporations in the field of food processing, taking advantage of experience in management, marketing and technology; exploiting brands, diversifying products and markets.

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Strong brand positioning Vinamilk positions its brand through 4 main strategies such as choosing a broad positioning for the brand, choosing a specific positioning, choosing a value positioning and total value for the product brand.

a) Choose a broad positioning for product brands Usually, businesses do not have enough financial resources to lead in all fields,so they need to focus their resources on a few areas to lead in that field There are three ways to choose to position a broad brand: to be a producer of a unique product that distinguishes it from others, to be the lowest-cost leader, or to tap into a specialized market, or to be a marketer gifted school Vinamilk has chosen to widen its brand positioning with the first way through unique Soya soybeans.

b) Choosing a specific positioning for the product brand While many companies seek to position a legitimate interest only among the possibilities: the best quality; best results; most prestigious; most durable use; the safest; the fastest; easiest to use; The most convenient; best design; or the most stylish Vinamilk is positioning "international quality" to remind Vietnamese consumers that Vinamilk is the only Vietnamese company that exports dairy products to more than 10 countries around the world.

c) Choosing a value proposition for product brands Consumers often think that the money they spend to own a good must be worth its value

Therefore, in brand positioning, companies often safely position themselves so that buyers can quantify the costs they have to pay to get a satisfactory utility value In the dairy industry, that useful value is nutrition for consumers and their loved ones.Dairy companies regularly upgrade their dairy products to have higher 24

nutritional value than current products When the current product has a high value to be positioned in the mind of the consumer, the positioning of the new product is completely favorable Vinamilk has upgraded its Dielac milk product to Dielac Alpha with colostrum colostrum These products represent a higher, more individual lifestyle.

d) Deploying the policy of total value for the product brand Not only selling products, Vinamilk also focuses on positioning their after-sales service, making the useful value of dairy products increase through the center nutrition Vinamilk.

Resources based Model/ Core competences: list and analyze the Core Ressource, Core competences of Companies:

Core competencies are those capabilities that an enterprise performs exceptionally better than other competencies of the enterprise This is the basis of the development strategy and competitive advantage of the enterprise The VRINE Rules are standards for defining

According to the above rule, Vinamilk has based on the following core competencies: Marketing Vinamilk's advertising is very valuable and rare During the economic crisis, Vinamilk launched a comprehensive advertising and marketing campaign for yogurt as an essential food for the health of all members of the family From the place of fear of decline, Vinamilk yoghurt products have increased dramatically, becoming a demand that 25